Red 5 bulks up on mining
PERTH (miningweekly.com) – Gold miner Red 5 on Friday announced plans to increase production from its King of the Hills operation, in Western Australia, through the introduction of bulk underground mining.
The ASX-listed company told shareholders that the bulk mining would deliver increased ore production and improved operational efficiencies, as well as lower operating costs over the next 12 to 15 months.
The new selective bulk mining stopes are expected to underpin ore production from King of the Hills under the current truck-to-Darlot business model for at least the balance of the 2019 financial year, and for 2020, ensuring a strong production outlook for the mine while Red 5 completes its current strategic review of a potential broader bulk mining opportunity.
“While we are putting considerable effort into the review of the bulk mining opportunity and the potential for standalone processing at King of the Hills, a key benefit today flowing from the current 30 000 m drilling programme has been the ability to design bulk stopes which will have a positive impact on our current production and operating costs,” said Red 5 MD Mark Williams.
“The bulk stope concept was shown to be viable with the Lemonwood stope last year, and we have since had further success in mining bulk stope W4975 earlier this quarter. This stope, which was fired in a single large blast, delivered a grade of 4.5 g/t gold.”
Ore production from the King of the Hills operation is expected to increase from the current 35 000 t/m to some 50 000 t/m, with the bulk stopes to be mined using the existing mining fleet on site.
Williams said that the bulk stopes would now form part of Red 5’s mine plan for the next 12 to 15 months, and in the meantime, the company would complete a review of the standalone process plant opportunity at King of the Hills and evaluate the optimum way to unlock the broader bulk mining potential of the deposit.
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